This paper examines Estonia's health system through the lens of Bronfenbrenner's Ecological Model, analysing how physical and psychological health interact across individual, interpersonal, community, and societal levels within the country's sociopolitical, cultural, and digital contexts. It begins by outlining Estonia's historical transition from the Soviet Semashko model to its current Bismarck-type social health insurance system, highlighting the structural and ideological reforms that have shaped contemporary healthcare delivery, and demonstrates how extensive digitalisation, universal coverage, and a strong primary care system have contributed to notable public health achievements, including one of the lowest infant mortality rates in the European Union and high levels of system efficiency. Particular attention is given to Estonia's leadership in digital health innovation, including the implementation of e-Health systems and the X-Road data infrastructure, which have significantly enhanced accessibility, continuity of care, and patient safety. Despite these strengths, the paper identifies persistent challenges such as healthcare workforce shortages, regional disparities in service provision, and the pressures of an ageing population. The paper further argues that psychology remains underintegrated within the healthcare system, advocating for stronger legislative recognition of clinical and health psychologists, increased investment in training and workforce development, and the systematic integration of psychosocial care in chronic disease management, oncology, and geriatric services. Ultimately, the Estonian case illustrates how digitally enabled, preventive, and community-oriented approaches can inform more holistic and sustainable health system reforms in Portugal and other European contexts.